Disney earnings report beats expectations
The Walt Disney Co. reported earnings and revenue for the holiday quarter that beat Wall Street's expectations, helped by movie hits like "Frozen" and sales of its "Disney Infinity" console game. Net income in the fiscal first quarter through Dec. 28 rose to $1.84 billion, or $1.03 per share, from $1.38 billion, or 77 cents per share, a year ago. Excluding restructuring charges and other items, adjusted earnings came to $1.04 per share, beating the 92 cents expected by analysts polled by FactSet. Revenue rose 9 percent to $12.31 billion, beating the $12.25 billion expected by analysts. Shares rose $1.09, or 1.5 percent, to $72.85 in after-hours trading Wednesday, after already gaining 71 cents to close at $71.76 in the regular session.
Growth in U.S. service sector accelerates
U.S. service companies expanded at a slightly faster pace in January. New orders, sales and hiring showed strength in a sign that financial firms, retailers and information technology companies foresee stronger growth. The Institute for Supply Management, a trade group of purchasing managers, said Wednesday that its service-sector index rose to 54 from 53 in December. Any reading above 50 indicates expansion. The improvement points to continued economic gains for the service industry, despite some challenges posed by freezing temperatures and winter storms last month.
FROM NEWS SERVICES